The Midlands have always been the beating heart of the UK’s manufacturing industry. From producing Spitfires during WW2, to being home to some of the biggest automotive manufacturers, the Midlands were built on the back of manufacturing. Even during this period of political and economic uncertainty, it remains the home to some of the world’s biggest companies.
The local economy and community have revolved around manufacturing for decades. From those directly employed by companies like Jaguar Land Rover, Tulip and British Sugar, to the thousands of jobs created by associated businesses to ensure these companies have the infrastructure needed to operate efficiently.
A changing landscape
Manufacturing in the region must evolve in order to stay up to date with the latest developments. Digitisation and automation is critical to ensuring the manufacturing industry remains competitive. Many of the businesses have recognised this fact and invested heavily to maintain their position. In fact, since 2010 the number of highly skilled jobs in the Midlands has grown by 3.7%.
Approximately 700,000 workers are directly employed by 15,000 manufacturing businesses, accounting for a fifth of the region’s economy. As investment continues to grow, especially in new technologies, the jobs market for skilled workers is only going to go from strength to strength.
Will Brexit impact Midlands manufacturing?
Most people, even the government, don’t seem to have an accurate description of what will happen to various industries after Brexit. One thing that may help the Midlands manufacturing industry is the fact that 56% of the regions exports are to non-EU countries, which is the highest percentage in the UK.
However, there are still going to be plenty of obstacles for businesses to overcome. Most experts are predicting disruption to the supply chain.
The real-world impact of Brexit on Midlands manufacturing remains to be seen, but companies that innovate and invest in the best talent will still have the best long-term prospects. These companies could prove critical in sustaining the region through a time of change.
A healthy outlook
In the face of political uncertainty and financial cutbacks, the Midlands manufacturing sector has continued to grow. The weaker pound has driven a rise in exports, and 34% of businesses in the sector reported an increase in output.
The government is offering grants to companies working in manufacturing within the Midlands, such as the Advanced Manufacturing Supply Chain Initiative, which is open to businesses in the West Midlands and Liverpool. Private investors are also recognising the value the Midlands has to offer, with investors like Growth Street investing £50 million in Midlands based SME’s over the next 12 months.
Regardless of any current negativity surrounding the UK’s future prospects, many people seem to be taking a longer-term view. They are recognising the talent, infrastructure, and innovation of the Midlands manufacturing industry, which will all help to keep it at the forefront for decades to come.
This article was written by Richard Hanwell, Associate Director at The Sterling Choice and specialist in food, FMCG and engineering recruitment.
